Tuition is Up Again in New Jersey

Bad news, Mom and Dad.

The non-profit College Board reported that tuition and fees at state colleges and universities rose more than 8% last year.

To put the price increase into context, the 8.3% spike is more than twice the inflation rate of 3.6%. Meanwhile family earnings continue to fall across all income levels.

We’ve been monitoring and reporting on this for a while now. We knew tuition costs were going up, but I frankly didn’t expect the numbers to be this bad. The sluggish economy is causing a drain on state revenues and education is getting hit hard. According to the report, state funding per student has plunged 23% over the last decade.

That’s an eye-opener.

Given this environment, finding financial aid is more important than ever. It also may be wise to give extra consideration to private colleges and universities that may be in a position to provide more college aid.

We’ll keep an eye on this for you. And continue to find ways for families to reduce their out-of-pocket college costs.

Approximately two-thirds of undergraduates at public four-year colleges receive grant aid. The average grant-award last year was $6,539.

Borrowing by students and parents rose 2% from 2009-10 to 2010-11. Last fall, President Obama announced a plan that will allow borrowers to cap student loan payments at 10% of discretionary income.

Stay tuned, and we'll keep you posted.

Ian Welham is an expert at helping students find the right fit college, and helping parents pay for it. You can find him at Complete College Planning Solutions, and on Facebook.